Crude Oil Price Forecast – Crude Oil Markets Show Signs of Hesitation at 200 Day EMA
WTI Crude Oil
The West Texas Intermediate Crude Oil market has gapped higher to show signs of strength, rallied to the 200 day EMA, and then gave up the gains to show signs of exhaustion. That being said, it was preceded by a hammer, so I think at this point in time we are trying to figure out whether or not we are going to take off to the upside, or are we going to break down below here? At this point in time, the market looks as if it is consolidating in order to build up momentum for its next move.
If we were to break down below the bottom of the hammer, that would probably open up a massive meltdown in the crude oil market. On the other hand, if we break above the top of the shooting star, then it is very likely we go looking towards the $75 level.
Crude Oil Video 06.12.21
Brent
Brent markets also gap higher to kick off the trading session on Friday, but the 200 day EMA has offered resistance here as well. We have a shooting star that is preceded by a hammer as well, so I think this is a major consolidation area. The only question I have now is whether or not this is going to be some type of “accumulation area”? I think we will know the answer to that question in the next couple of days, but in the short term you probably are better off waiting for the market to tell you which direction it truly wants to go. Simply waiting to break out of the range between the hammer in the shooting star is the best strategy that I can think of at the moment.
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This article was originally posted on FX Empire
